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I think I got gouged on the extended warranty

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my thing with the warranty is i dont want a car payment AND a large repair bill! Few years back i had a company car, Tayota Tundra, about 45K miles or so had a catyletic converter issue, check engine light came on and wouldnt pass inspection, took it to 3 different garages all came back with a $2800 bill to fix it, if it wasnt a company car id of still had a payment for sure since it was only a couple years old but out of the 36K warranty!
Most major emission components are covered for 8 yr/80k miles Thats a federal thing, not just the auto maker.
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Puddle Jumper

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Most major emission components are covered for 8 yr/80k miles Thats a federal thing, not just the auto maker.
Unless the issue was a stolen catalytic converter. No warranty is going to cover that. Sadly, we are seeing a high number of people coming into the service drive with stolen converters these days. 🤦‍♂️😞
 

broncobase1

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It was very late Monday when i picked up my bronco. The finance guy came in and didn't really show me the options, basically just said lets cut to the chase.. this one is the best one and i need it, etc...I felt very pressured, but also know it's a good idea to get the extended warranty. However, after reading through here I am feeling like I got screwed over. $3900 for the premium care. I haven't bought a new car in many years (i have always leased) so i forgot that they would come at me with this. Is this way too much?
That price is probably not out of line if you purchased the top package, my dealers top package was close to that. I didn't purchase anything and paid window sticker MSRP, but it goes without saying they will try and sell you the packages. I knew beforehand I didn't want any packages and basically said enough of the sales pitch so I can write out the check and be out of here. Overall my dealership experience was good, and I was stern but not rude.
 

JonathanDuong

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8 years/125k miles - not sure about deductible. man i feel like an idiot. I can just call and cancel? I wonder how would that work since they put it into my loan. I'll have to ask.
I can't quote what I'm saying here exactly, but one of my employees had a GMC Sierra with extended warranty. He was able to get the value of it back when he sold his truck. I believe it works as a 'devaluation' day by day kind of thing. Since you have not used any bit of the extended warranty, you should be getting a full refund back for it.

On the flip side, because it's on your car loan, it's embedded into your total out the door price which means you are also paying a certain percentage on that loan as well. Because of that, I am not entirely sure how they would give you such refund back properly as it's on a loan. Might have some work around if it's through Ford Finance, but chances are still slim. They might just have to cut you a check for the price of the extended warranty in which you can use to pay towards the loan.

Good luck, sorry that there are these assholes that pushes this play.
Used Cars Sales and Extended Warranties are a dealers biggest profit!
 

JonathanDuong

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Unless the issue was a stolen catalytic converter. No warranty is going to cover that. Sadly, we are seeing a high number of people coming into the service drive with stolen converters these days. 🤦‍♂️😞
That's when your insurance comes to play... and then your deductible.
I had one stolen not long ago, thankfully it wasn't on my Bronco.
$500 deductible... scheduled it for Friday. Shop was closed on the weekends so they didn't work on it until Monday evening as advised. Should be ready on Tuesday morning.

Guess who had a free rental car on a very expensive near Holiday weekend!
 

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MnLakeBum

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ESPs are truly brilliant marketing. Sit back and let anecdotal experiences market it for you. The math is clear, you could put that money under your mattress and it would be a better investment. Companies need to book a liability against this revenue and that will likely be around $400 for every one sold. That means on average they have to pay out $400. But when they do pay out, it’s usually $4k, hence the countless anecdotal stories (especially from people who deal in warranty payments).

Vehicle warranties are bad deals. Period. 100% fact. They are insurance against a sudden cost, and it’s fine to value that. We all have our tolerance levels. But be honest with yourself and others, they are NOT investments. They are simply overpriced insurance policies.
Every insurance company is set up to make money, whether it's car, home, life, or any other type. I'm guessing you have insurance on something, and I'm sure that insurance company is making money off your monthly payments.

Everyone has different risk tolerances. In my 20s with a bad driving record I didn't have collision insurance(WI doesn't require it) on my car for 6 years because it would have cost me $2,800 per year. I hit a deer at 70 mph and the $6,500 car was a total loss other than the $250 I got from the salvage yard. In the end I saved money because six years of car insurance would have been $16,800. I also chose to decline my health insurance in my 20s from my employer, Best Buy, because I was young and healthy and figured it was worth the risk to save $65 per month. I never needed health services for those six years.

I clearly have higher risk tolerances than most which is one of the reasons I don't have life insurance, and the deductible is $35,000 on my homeowner's insurance. Car repairs are expensive, and some can't afford a $5,000 repair when they are still making payments. Paying $1,600 for a $100 deductible ESP that expires after 8 years/100k miles might be an acceptable price to pay for peace of mind for some people even if they don't think they will need the insurance. I've only purchased an ESP on one car in my life, a 2014 Audi that I knew was expensive to fix. I had a $1,900 repair outside the factory warranty that the $1,100 ESP paid for so I did a little better than break even. My Telsa had a $15,000 repair for a new battery at 108,000 miles but luckily the factory warranty covered it. If it would have happend 13 months later, I would have had to pay for it.

We all hope we never use insurance, but most of us still buy some types of insurance.
 
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TM WildTrak

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I got a 6yr/85k premium care, $0 deductible for $1650. My last car needed a transmission and a starter before it hit 80k miles.
 

dgorsett

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That price is probably not out of line if you purchased the top package, my dealers top package was close to that. I didn't purchase anything and paid window sticker MSRP, but it goes without saying they will try and sell you the packages. I knew beforehand I didn't want any packages and basically said enough of the sales pitch so I can write out the check and be out of here. Overall my dealership experience was good, and I was stern but not rude.
.

...Stern but not rude
I had a finance guy tell me after refusing extras " you're kinda blunt aren't you?".
 

BadBradBronco

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Are you in FLorida? Here we can’t buy “online” Extended warranties, they must be purchased from a dealer in the state. Some bogus law that benefits the dealers and absolutely screws the consumer.
 
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Fordmanbob

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It was very late Monday when i picked up my bronco. The finance guy came in and didn't really show me the options, basically just said lets cut to the chase.. this one is the best one and i need it, etc...I felt very pressured, but also know it's a good idea to get the extended warranty. However, after reading through here I am feeling like I got screwed over. $3900 for the premium care. I haven't bought a new car in many years (i have always leased) so i forgot that they would come at me with this. Is this way too much?
Granger is offering them to any b6g member for $50 over their cost
 

river

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I have had my Bronco since Nov and paid $2980 for a 5 yr 100k $100 deductible. So I canceled it last week and got an Premium Care 8yr 125k $100 deductible from Grainger for $2520. They are doing the $50 above cost, but delete the key service, int/ext lights and first day rental. So you do have to pay a little more to add those back in. I am comfortable having the service contract because the Bronco is a first year model and there may be issues down the road. To cancel, I called Ford ESP and they said you file with them and they pass it back to the dealer or you can call your dealer and request cancellation form. I believe the refund is based on mileage and takes 4-8 weeks to get a refund check.
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